BOJ FX sale pushes rate down

September 26, 2018 by

BOJ sold US$11M in today’s BXFITT auction.


The average rate for the Jamaican dollar auctioned by Bank of Jamaica in today’s B-FXITT Standard Intervention Auction came out at $135.42 down from $136.55 at last week’s auction.
Bank of Jamaica offered US$11 million for sale in today’s B-FXITT auction with 42 bids received covering US$23 million. Last week 41 bids were received amounting to $26.15 million for US$11 million on offer.
The country’s central bank will be offering US$41 million in sales over the next four weeks, including $11 million next week and US$10 million for the other three weeks up to October 17.
Today’s average rate compares with an average buying rate of $134.612 for purchase of US$33.75 million in Tuesday’s foreign exchange trading and an average rate of $135.56 with US$37.67 million being sold. On Monday, Dealers bought US$42.19 million at an average of $134.87 and sold US$42.19 at $135.95.
On Wednesday, the foreign exchange market closed with dealers buying US$56.88 million in all currencies which included US$49.86 million in US dollar currency at an average rate of $134.73 and selling a total of US$519 million in all currencies with the US dollar accounting for US$38.27 million at an average of $135.65, up slightly on Tuesday selling rate.

Filed Under: Economy, FX Market Tagged With: , ,

What a fairly valued FX rate means

September 7, 2018 by

Filed Under: Economy, Feature Stories, FX Market

Jamaica dollar in modest recovery

September 5, 2018 by

The Jamaican dollar traded at an average of $136.94 to the US dollar on Tuesday. Dealers sold US$52.7 million and bought $49.4 million at an average of $135.81.
Tuesday’s total intake of funds, amounted to the equivalent of US$61.96 million while US$62.65 million left the system.
Unlike Friday and Tuesday, Monday’s trading was moderate, with just US$27.65 million in all currencies bought by dealers and the selling of US$30.4 million. Buying of US dollars amounted to US$24 million at an average rate of J$134.56 and selling of US$28 million at $137.10 on Monday, compared to selling of US$40 million on Friday at $137.01. On Friday dealers sold a total of US$46.8 million in all currencies, having bought US$53.5 million, including $44.7 million in US dollars currency.
On Wednesday, last week, Bank of Jamaica sold $16.5 million to dealers pushing the total purchased for that day to US$57 million, while they sold $43.3 million at an average of $137.32. Trading of all currencies saw a total of US$55 being sold against $69 million bought by dealers.
On Thursday dealers bought only US$29.78 million, but sold US$51.4 million, with the rate clearing at an average of $137.55. In all, dealers sold the equivalent of US$53 million in all currencies.
Last week Wednesday, the BOJ offered US$16.5 million to the market and received 46 bids of US$39.15 million. The average clearing rate was $137.03. The highest bid was $137.50 and the lowest $135. On Wednesday, September 5, US$11 million, to be followed by US$10 million per week, over the next three weeks.

Filed Under: Economy, Feature Stories, FX Market Tagged With: , , , , ,

Inflation better measure economic health than FX rate

September 5, 2018 by
Add your HTML code here...

Filed Under: Economy, Feature Stories, FX Market

Foreign exchange developments 2017 & 2018

August 31, 2018 by

Filed Under: Economy, Feature Stories, FX Market

No sustained pressure on Jamaica dollar

August 29, 2018 by

Filed Under: Economy, Feature Stories, FX Market

BOJ pumped US$65M in FX market last week

August 27, 2018 by

Bank of Jamaica (BOJ) scheduled B-Fxitt auction last week saw 43 bids seeking to purchase US$39.9 million but only $15 million was on offer, leaving a large amount of unsatisfied demand.
Only 17 bids succeeded in getting a portion of the funds offered for sale, but then not every bid really wanted the funds. The bids left the average rate at $138.19, with $137.90 being the lowest rate that succeeded. The lowest fully successful bid was $137.97 for US$1 million. The lowest bid received was $131.10 to purchase US$1.5 million.
On Friday, BOJ offered US$40 million in what they called a flash intervention tool. On Friday August 31, last year BOJ also had a flash intervention sales that pushed the amount of buying in the foreign exchange market on that day to US$76 million. BOJ sold US$5m on the Wednesday of that week.
The flash intervention this past week, was clearly to satisfy the unmet demand from Wednesday’s auction, 42 bids were presented amounting to US$76.9 million leaving U$26.9 million of unmet demand. The average rate declined to $137.49, with the lowest accepted bid price being $136.65 and the highest being $138.70. The lowest bid that was fully allocated was US$8 million at $137.00. Bids came in as low as $129. The lowest bid that had some success was $136.65, and this compares with $137.90 on Wednesday, suggesting that those bids that did not succeed included a large amount of low bids made to satisfy the requirement that all dealers must put in a bid. On Wednesday, this week

BOJ sold US$65M into the FX market last week.

BOJ will be carrying out their usual auction at which US$15 million will be made available, to be followed by US$10 million each, on September 5 and 12.
On Thursday, dealers bought US$33.9 million at $136.37 and sold US$35.3 at $137.96, up from a rate of $137.48 on Wednesday. On Friday, US$73.2 million was purchased by dealers at $136.75 and they sold US$46.2 million at $137.90. On Monday dealers bought US$45.5 million at $136 and sold US$50.3 million at $137.52, a fall from Friday’s Average rate.

Filed Under: Economy, Feature Stories, FX Market Tagged With: , , , ,

Hedging the foreign exchange rate

August 24, 2018 by

Filed Under: Economy, Feature Stories, FX Market

J$ rate stable for Wednesday

August 22, 2018 by

Bank of Jamaica offered US$15 million for sale today in the B-fxitt weekly auction and will auction a similar amount on Wednesday, 29 August.
US$10 million each are scheduled for auction on September 5 and 12. The country’s central bank sold US$10 million on August 15, at an average rate of $136.66 with just 14 of the 41 bids amounting to US$26.85 million, were successful.
At midday on Wednesday, dealers bought US$14.40 million at an average of J$136.6342 and sold US$9.75 million at an average of J$137.2364. At the close of trading on Wednesday dealers bought US$46.15 million at an average rate of $136.41 and sold US$35.57 million at $137.48.
Wednesday’s rates come against the background of dealers buying US$37.7 million on Tuesday at an average of J$135.57 from the public and selling US$37.7 million at an average rate of J$137.47.
On Monday, buying by dealers was US$47.3 million at 135.5055 and selling, US$49.3 million at an average of J$137.4537.

Filed Under: Economy, FX Market

Understanding Jamaica’s fx market part 3

August 22, 2018 by

Filed Under: Economy, Feature Stories, FX Market, General Business News